July 25, 2021

Tenants and landlords fear an increase in apartment building prices due to the Trump administration’s proposed changes to the country’s mortgage interest deduction and the government’s intention to lower the tax rate on the value of assets.

“I’m afraid that the mortgage deduction will be reduced, and I don’t think I’m going to be able to afford the mortgage, and we will have a rental crisis,” said Vidyal Mehta, a real estate agent in south Mumbai.

She said she has seen tenants who have rented for months only to have their rents doubled to 50,000 rupees ($8,000) or more per month, adding that she was also seeing renters who have not paid their rent for months but have now been told they can no longer afford to stay.

“We will be facing a real rental crisis.

The real problem is the new administration, and their intention to increase the tax,” said Mehtas co-owner Ram Vilas Murthy.

A senior official with the Finance Ministry said the tax reduction would be applied in a phased manner and would apply to the entire housing market.

“The government will be making a concerted effort to increase real estate prices,” the official said.

The official, who spoke on condition of anonymity because the move is still being finalized, said that the government is trying to reach an agreement on tax cuts in order to provide the public with more affordable housing.

The Finance Ministry, however, declined to comment on any specific agreement.

A housing official in the capital city, however said the city is looking at the tax cuts and could come up with a new proposal for the future.

A government spokesperson did not respond to a request for comment.

Housing Minister Arvind Panagariya has said that all existing apartments in the country will be exempt from the proposed tax cuts.

“No new units will be allowed to be built in these apartments.

It will be an immediate, blanket reduction in the value,” Panagriya said last month.

“If there are new units, they will be exempted from the tax on the whole apartment building.”


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